Rachel Warren

Importantly, they have a very well-funded and growing dividend with 53 years accounting of consecutive increases.

I think that does underscore its financial stability despite current struggles.

Now, I think very differently from the other business we've talked about today, Chipotle, and obviously, this is a different industry.

Target's struggles, some of them have been related to the macro environment, but a lot of them have been very, very specific to the company.

There's been a lot of consumer backlash over various policies.

They've really, really struggled to retain a solid share of non-discretionary spend.

You've got a lot of consumers going to rivals like Walmart.

This has all created, I think, a bit of a perfect storm for Target.

Now, we have a new CEO coming in, Michael Fidelke.

He's a longtime veteran at the company.

He officially takes the role in February of 2026.

And under his leadership, I think Target really plans to implement what we're seeing as a multi-year plan on reinvigorating their private label brands, some of their key discretionary categories like toys and sporting goods.

Target's already trying to really invest heavily in store remodels.

They've been leveraging various AI-powered tools for personalized shopping.

Management is confident in their plan.

They want to regain market share.

They're planning to drive over $15 billion in revenue growth over the next five years.

I think that's possible, but I think that there's a major shift that needs to happen in the business in the next few years for that to happen.

A lot of the drag on their performance has been the shift in consumer spending.

They're still a profitable business, but those sales declines are really dragging overall.